The board of Fortis Healthcare Ltd. has decided to initiate a fresh, time-bound bidding process for the takeover of the company.
The fresh effort is intended to optimiae the company’s and shareholders’ short- and long-term interests.
The board’s decision comes in the wake of a letter received from Hero Enterprise Investment Office and the Burman Family Office (Munjal-Burman consortium) on May 28 enabling the board to initiate a fresh bidding process. As a result, the Munjal-Burman consortium’s offer, accepted by the board on May 10, stands mutually terminated.And, the board has since decided to initiate a fresh bidding process.
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“The process has been designed to ensure a robust outcome coupled with tight timelines keeping in view the company’s near-term obligations,” Fortis said in a filing with the BSE.
Based on the suitability of the offers evaluated earlier, the board has also decided to invite three of the bidders — Munjal-Burman consortium, TPG-Manipal consortium, and IHH Healthcare Berhad — to participate in the process.
“The board shall evaluate the EOI (expression of interest) submitted by other bidder(s) to decide their participation in the process taking into consideration the contents of the EOI, inter-alia, (a) financing capability, (b) ability to consummate the transaction in a timely manner, and (c) internal and external approvals required to consummate the transaction,” Fortis said.
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Bidders would be provided 10 days for financial and legal due diligence and an opportunity to interact with the management and advisors who had conducted vendor due diligence (VDD) for the company, a release said.
“Ability to carry out due diligence will be provided, subject to execution of (i) a non-disclosure agreement between the bidders and the company in the form furnished by the company and (ii) release letters, if applicable,” Fortis said.
Binding bids to be submitted by the bidders should address — minimum investment of ₹1,500 crore into FHL by way of preferential allotment, the plan for funding of RHT Health Trust (“RHT”) acquisition and the plan for providing an exit to private equity investors of SRL.
Binding bids, Fortis said, should be addressed to the board of directors and submitted in a sealed envelope only between 8.30 a.m. to 9.30 a.m on Thursday, June 14.